15 points 6. Details of a purchase invoice and related credit memorandum are sum

Question

15 points 6. Details of a purchase invoice and related credit memorandum are summari zed as follows: Invoice: Cost of merchandise listed on purchase invoice Credit memo: Cost of merchandise returned.f Assume that the credit memorandum was received prior to payment and that the invoice voide$8,500 200 Prepaid transportation charge added to invoice... Terms, FoB shipping point, 1/10, n/eom in ooos $2,500 is paid within the discount period. Determine the following: a. b. c. Amount of the cash discount allowed. Amount to be paid by the purchaser if the discount is taken. Cost of the merchandise to the purchaser if the discount is NOT taken.

Explanation / Answer

a) Cash discount allowed = ($8500+$200-$2500)*1% = $62 b) Amount to be paid by the customer = ($8500+$200-$2500-$62) = $6138 c) Cost of merchandise to the purchaser if discount is not taken = ($8500+$200-$2500) = $6200

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.